« Fives works on the two environmental levers: eco-design and control of the environmental impact of its own industrial sites »

FROM ENERGY AND ENVIRONMENT CONCERNS TO

STRATEGY CHALLENGE

Fives designs and manufactures equipment for a range of industries, some of which are energy-intensive and major emissions generators. Environmental concerns, energy performance, and operational performance are increasingly linked. Fives supports its customers by working on the two environmental levers within its scope: eco-design and control of the environmental impact of its own industrial sites.

An innovation and continuous improvement process focused on eco-design

Launched in 2012, Fives Engineered Sustainability® eco-design program combines operational excellence with high environmental performance. This voluntary innovation approach covers both environmental issues (energy, emissions, material consumption) and safety as well as operational performance (operating costs, flexibility, productivity). The entire program is based on the ISO 14062 eco-design standard and was independently certified by EY in 2013.

In 2017, deployment of the Engineered Sustainability® program continued in two areas:
- On one side, by working to obtain or renew the Engineered Sustainability® brand on products considered strategic for their markets, given that the brand expires automatically after three years if it is not renewed.
- And on the other, by opening up the method to subsidiaries which want to (re)design their products with this global approach without necessarily aiming to obtain the Engineered Sustainability® brand.

Fives was also involved in a study to evaluate the benefits of eco-design carried out by the ADEME (French Environmental and Energy Management Agency) on a panel of 10 French companies. Its results confirmed the economic, organizational, and reputational benefits of eco-design.

An environmental approach that continues to gain ground within the Group

Fives is continuing its work on achieving the target it has set in 2012: all Group’s industrial sites must implement an environmental management system and obtain ISO 14001 certification. At end of 2017, 80% of the target sites were ISO 14001-certified (including new industrial sites acquired after 2012).
Thanks to the new eco-design requirements that were included in the ISO 14001 standard in 2015, synergies were developed between the Group’s eco-design and ISO 14001 programs. Training on the internal Life Cycle Analysis tools and support for the subsidiaries were provided to help them make eco-design an opportunity for differentiation.

ENERGY TRANSITION

Fives commissioned Carbone 4, a firm which specializes in corporate carbon strategies, to carry out a study to estimate the impact of climate change limited to 2°C by 2050 on the Group's activities and strategy. This study, which is a part of the energy transition approach, gave the Group insights into its technologies and activities as well as development opportunities to explore.

CIRCULAR ECONOMY

Team2 (the competitive cluster for environmental technologies applied to materials) aims to create a French label for recycling equipment manufacturers, based on Fives’ eco-design program.

At the 2017 World Efficiency Solutions tradeshow, an international gathering for the resource-efficient and low-carbon economy, Fives presented its Engineered Sustainability® program, as well as several high environmental performance technologies: the FCB Horomill® cement grinding plant, the Pillard NOVAFLAM® rotary kiln burner for cement plants, the Stein Digiflex® steel production kiln, the GENI-belt sorter for intralogistics, and more.

SUPPLIER INNOVATION

2017 was an opportunity to encourage the innovation of suppliers.

The Pillard NANOxFLAM® boiler burner was developed by R&D to achieve the lowest NOx emissions on the market. A multidisciplinary team involving R&D, the Design Office, and Purchasing worked with suppliers using a collaborative, iterative approach with open specifications to foster innovation during the industrialization phase. “This efficient and cooperative approach made it possible to continue to innovate on the burner’s design and performance, enhance our intellectual property, and achieve competitive manufacturing costs while optimizing the supply chain: this optimization was another challenge for the market launch of this burner” says Pierre André Jarniac, the Combustion Business Purchasing & Supply Department manager.

Upstream work with other industrial companies made it possible to incorporate new materials into generators for inductors. According to Aurélie Gonzalez, Innovation Program Manager for Process, Energy & Environment, “our work on eco-design has shown that working with our suppliers on new materials can reduce the generators’ impact thanks to higher yields, modular design, and more user-friendly equipment.”

50

PEOPLE WERE TRAINED ON ECO-DESIGN AND THE INTERNAL LIFE CYCLE ANALYSIS TOOLS IN 2017

32%

OF ELIGIBLE SUBSIDIARIES ARE INVOLVED IN THE ENGINEERED SUSTAINABILITY® ECO-DESIGN PROGRAM

9

PRODUCTS HOLD THE ENGINEERED SUSTAINABILITY® BRAND AT THE END OF 2017

80%

OF THE GROUP’S INDUSTRIAL SITES ARE ISO 14001-CERTIFIED